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The Bank of America® Business Advantage Cash Rewards Mastercard® Credit Card is a no-annual fee, small business credit card with an attractive cash back rewards program. Though it’s not currently on our list of the best small business credit cards, this Bank of America credit card is always a contender to make our best cash back credit cards list.
What makes Business Advantage Cash Rewards Mastercard so great? Aside from the sign-up bonus, there’s the solid cash back deal, anchored by 3% cash back on gas station and office supply store purchases up to $250,000 in total annual spending. There’s the 9-billing-cycle 0% APR introductory promotion on purchases. And did I mention there’s no annual fee?
This card isn’t a silver bullet for credit-seeking business owners, but it does have plenty going for it. Here’s what you need to know about its features, upsides, downsides, and overall suitability.
Key Features
Sign-up Bonus
When you spend at least $500 within the first 60 days, you get a $200 bonus, payable as a statement credit to your account.
Earning Cash Back
The Bank of America® Business Advantage Cash Rewards Mastercard Credit Card earns 3% cash back on “business purchases,” which Bank of America® defines as gas station and office supply store purchases. This benefit is capped at $250,000 in total annual category spending.
Restaurant purchases earn unlimited 2% cash back, meaning this card offers a nice opportunity to save money at restaurants. All other purchases, including gas station and office supply store purchases above the $250,000 annual spending cap, earn unlimited 1% cash back.
Redeeming Cash Back
Accumulated cash back can be redeemed for statement credits against your credit card balance or deposited into a small business checking or savings account at Bank of America®. The minimum redemption threshold is $25. No matter how you choose to redeem, using your cash back wisely can be a great way to reduce your business expenses and save money on a tight budget.
Business Advantage Relationship Rewards Cash Back Bonus
When you join the Business Advantage Relationship Rewards program, you’re entitled to a cash back bonus ranging from 25% to 75% on all eligible spending. Depending on your Relationship Rewards tier, this raises your effective cash back rate to:
- 3.25% to 3.75% on gas and office supply store purchases, up to $250,000 in annual spending
- 2.25% to 2.75% on restaurant purchases
- 1.25% to 1.75% on all other eligible purchases
The program requires minimum average daily balances of at least $20,000 over a 3-billing-cycle period, so it’s not for business owners with tight cash flows.
Introductory APR
Business Advantage Cash Rewards Mastercard has a 9-billing-cycle, 0% APR introductory promotion on purchases. There is no comparable promotion for balance transfers.
Regular APR
After the introductory period ends, the purchase APR ranges from 13.49% to 23.49%, depending on your personal creditworthiness and prevailing rates. The balance transfer APR falls within the same range from day one.
Important Fees
Business Advantage Cash Rewards Mastercard has no annual fee. Foreign transactions cost 3% of the transaction amount. Balance transfers and cash advances both cost the greater of $10 or 4% of the transaction amount (except overdraft protection cash advances, which cost the greater of $10 or 3% and require enrollment in the Bank of America® overdraft protection program to qualify for the lower fee). Late payments cost up to $49, while returned payments cost $39.
Overdraft Protection Transfers for Bank of America Deposit Accountholders
Business Advantage Cash Rewards Mastercard has an optional (opt-in) overdraft protection transfer program for Bank of America deposit account holders.
When you attempt a checking account transaction that would typically result in an overdraft, Bank of America automatically draws a cash advance on your credit card’s credit line. This allows the transaction to go through as intended.
Cash advances are drawn in increments of $100 (for instance, a $75 overdraft would incur a $100 transfer) and begin accruing interest at the regular cash advance rate immediately. There’s a fee of $10 or 3% (whichever is greater) for each transfer.
Cash Flow Management Tools for Business
This card comes with some useful cash flow management tools for business, including:
- An automatic online payment system
- QuickBooks integration
- Transaction categorization/tracking through the online MyReport system
Mastercard-Backed Cardholder Benefits
Business Advantage Cash Rewards Mastercard has a slew of Mastercard-backed benefits, most of which cost nothing out of pocket. The most noteworthy include lost luggage replacement, emergency ticket replacement, and travel accident insurance.
Credit Required
Business Advantage Cash Rewards Mastercard is designed for business owners with excellent credit. Any notable credit issues in your recent past, including business or personal bankruptcy, will likely disqualify your application.
Advantages
- No Annual Fee. The Bank of America® Business Advantage Cash Rewards Mastercard Credit Card has no annual fee. That’s great news for light spenders who don’t earn rewards quickly enough to offset recurring annual charges.
- Generous Cash Back Rewards (3%) on Gas and Office Supply Purchases. With a $250,000 annual category spending cap, this card’s 3% category is quite generous – worth $7,500 in annual cash back when maxed out. For comparison, the consumer version of this card, BankAmericard Cash Rewards, caps 3% category spending at $10,000 per year. Unless your business has truly impressive spending needs, you’re not likely to bump against Business Advantage Cash Rewards Mastercard’s cap.
- Unlimited 2% Back at Restaurants. This card’s 2% category is excellent as well. With unlimited earning at restaurants, it’s tailor-made for business owners who need to wine and dine clients and employees often.
- 0% APR Introductory Purchase Promotion. The 0% APR introductory purchase promotion lasts 9 billing cycles, long enough to finance substantial purchases – or simply catch a break from interest charges on everyday expenses if cash flow is tight.
- Easy to Attain Sign-up Bonus. The $200 sign-up bonus statement credit is easy to reach, requiring just $500 in spending within 60 days of account opening. Even modest-spending business owners should have little trouble clearing this threshold.
- No Penalty APR. Unlike many other Bank of America® credit cards, Business Advantage Cash Rewards Mastercard doesn’t charge penalty interest. This is great news for business owners who occasionally miss statement due dates due to cash flow issues or unexpected obligations.
- Overdraft Protection for BoA Deposit Accountholders. If you have a Bank of America® business checking account, you can opt into this card’s overdraft protection program and worry a little bit less about your checking account balance. There’s a $10 (or 3%) fee per transfer, but that may still be preferable to an embarrassing overdraft.
- Business Advantage Relationship Rewards Members Get Up to 75% Cash Back Boost. If you can maintain a minimum daily balance of at least $20,000 in a qualifying Bank of America business deposit account, you’re entitled to a substantial cash back boost – up to 75% on all eligible earnings for average daily 3-billing-cycle balances of $100,000 or more.
Disadvantages
- $25 Minimum Cash Back Redemption Threshold. You can’t redeem your accumulated cash back until you hit the $25 threshold. If you use this card exclusively when you gas up your car for work, then you might take some time to reach this threshold.
- Has a 3% Foreign Transaction Fee. This card has a 3% foreign transaction fee. If you routinely travel out of the country on business, even just to Canada or Mexico, this is likely to pose a problem. Look instead for a business rewards credit card with no foreign transaction fees, such as Chase Ink Business Preferred.
- Modest Baseline Cash Back Rate (1%). This card’s baseline cash back rate is a modest 1%. Though unlimited, that’s not exactly a great rate of return. If you’re looking for a business credit card that offers a higher rate of return on a wider range of spending, check out Capital One options such as Spark Cash for Business and Spark Miles for Business, one of the top travel rewards credit cards on the market.
- No Introductory APR Promotion for Balance Transfers. Business Advantage Cash Rewards Mastercard doesn’t pair its 0% APR introductory purchase promotion with a comparable balance transfer promotion. That’s a bummer for new cardholders looking to transfer and pay down high-interest credit card balances from other accounts.
Final Word
The Bank of America® Business Advantage Cash Rewards Mastercard® Credit Card is similar in many respects to Bank of America’s popular consumer cash back card, the BankAmericard Cash Rewards. Both cards have a 3-tiered cash back rewards system, for instance. But Business Advantage Cash Rewards Mastercard’s 3% category has a vastly higher annual spending cap – $250,000, compared with just $10,000 for the consumer version.
If you own a small business or work as a full-time freelancer or independent professional, the choice is clear.
